Why Churches are not taxed


I am inspired to share this idea and bring to discussion, after hearing Christian leaders took the rare step on Sunday (25/3/2018) of closing Jerusalem’s church of the holy sepulcher in protest at Israeli tax measures and a proposed property law. Accordingly, for further discussion and research insight I raise issues related with why churches are tax exempted? What are the rationales and what about in Ethiopia?  

Taxation is a governmental assessment upon property value transaction, estates of the deceased, licenses granting a right and/or income and duties on imports from foreign countries. It includes all contributions imported by the government upon individuals for the service of the state.

Generally taxes are divided into two broad categories as direct and indirect. Direct taxes are those assessed against income, land or real property, and personal property, which are paid directly to the government. Indirect taxes are assessed against articles of consumptions, such as products or services, but collected by an intermediary such as a retailer.

Tax and religious institutions

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የልዩ ምርመራ ኦዲት ግኝቶችና የወንጀል ውጤታቸው





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Bank deposit method of proving Tax Evasion: the current litigation heresies



Tax evasion is proscribed as crime under Art 125 of Federal Tax administration proclamation no-983/20081. Under this article, the law proscribes transgressions such as understatement of income (evasion of assessment), failure to file tax return with intent to evade tax and evasion of payment as offenses of tax evasion. To proof tax evasion, prosecutors must proof the existence of all ingredients of the offence, namely intent to defraud, affirmative act and evaded tax. Amongst ingredients of crime of tax evasion, the existence or otherwise of evaded tax is a typical one. To identify the nature and amount of evaded tax, one should make use of evidence. We can prove tax evasion both by direct and indirect evidences.

Proof is the establishment or refutation of an alleged fact by evidence. It’s the evidence or argument that compels the mind to accept an assertion as true. In its judicial sense; it encompasses everything that may be adduced at a trial, within the legal rules, for the purpose of producing a conviction in the mind of judge. Evidence is a thing (including testimony, documents and tangible objects) that tends to prove or disprove the existence of an alleged fact.

As indicated above, Tax evasion can be proved both by direct and indirect method of proof. This can be done by auditor which then appears in court of law as an expert witness.

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